HRH Crown Prince: PIF Planning Additional Local investments worth over SR150bln, for the Fiscal Year 2022

 Total spending in the Kingdom to reach SR27trillion by 2030 -HRH Crown Prince Predicts

HRH Crown Prince Mohammad bin Salman bin Abdulaziz reaffirmed, on the occasion of approving the budget for the Fiscal Year 2022, that the journey of economic transformation, adopted by the Kingdom’s government will continue to achieve the set targets, in accordance with the directives of the Custodian of the Two Holy Mosques.

The budget has come as a confirmation of the results achieved due to the economic and financial reforms, and aimed at promoting economic growth and financial sustainability together, towards a vibrant society, a prosperous economy and an ambitious nation, he explained, adding that the government is committed, in the 2022 budget to the planned spending in the medium term, which was previously announced during the last year.

We also expect to achieve budget surpluses for the Fiscal Year 2022, he reasserted, by completing work on developing the financial planning process and raising the efficiency of spending, in addition to developing various sources and more, HRH Crown Prince elaborated.

Stability of government revenues, which support the objectives of the Financial Sustainability Program, seeking to complete the march towards enhancing economic stability and sustainability in the medium and long term, as well, he pointed out.

HRH Crown Prince said in a press statement following the announcement of the state’s general budget for the Fiscal Year 1443/1444 AH (2022): “The financial and economic results and indicators confirm that we are progressing positively, as the next year’s budget comes in a global climate characterized by great challenges, in the light of the repercussions of the pandemic.

Not only with great ambitions locally, but also within a financially disciplined framework, that focuses on the efficiency and effectiveness of directing government spending and the use of available resources to achieve the best return, while maintaining financial stability as a fundamental pillar of sustainable growth, HRH Crown Prince drew attention.

The Crown Prince stressed that the economic recovery, initiatives and policies of financial control, and the development of public finance management and its efficiency contributed to continuing to reduce the budget deficit.

Meanwhile maintaining the achievement of the main goals of the vision, and it is expected that the deficit in 2021 will stood at about 2.7 percent of GDP compared to 11.2 percent in 2020, as it was affected by the pandemic, he confirmed.

As we expect to achieve financial surpluses that may exceed 2.5 percent of GDP in 2022, these surpluses will be used to increase government reserves, to meet the needs of the impact of the pandemic, strengthen the Kingdom’s financial position, and raise its capabilities to face global shocks and crises.

He explained that the economic and structural reforms implemented, since the launch of the Kingdom’s Vision 2030, have contributed to reducing the negative effects associated with the pandemic.

Until the end of the third quarter of 2021, he stated, that the Kingdom achieved high rates of real GDP growth rates, for the non-oil sector, which amounted to about 5.4 percent, driven by the growth of the private sector by about 7%. In the pre-pandemic levels, and this growth rate was also accompanied by a decrease in unemployment rates among citizens from 12.6 percent, at the end of last year to 11.3 percent in the middle of the year, as a result of the increase in job opportunities available to citizens.

HRH Crown Prince also stressed that the citizen’s role today has become pivotal in economic development, as it directly contributes to achieving achievements in various promising fields and sectors, in addition to increasing the participation of women, whose participation represents a positive force for society, as a whole.

The Crown Prince indicated that the Kingdom’s Vision 2030 focuses on the stage of achieving and deepening the impact, involving the private sector in the transformation journey, to make a qualitative leap, in various sectors.

The quality of life, and the development of sectors contributing to the economy, he remarked, adding that the review and update of strategies, programs, initiatives and procedures is carried out on a regular basis, to ensure their effectiveness and correct their course, whenever the need arises, in order to achieve the objectives of the Kingdom’s Vision 2030.

He also underscored the importance of the role played by the private sector, as a major and vital partner in development, and that the government, in addition to the areas of spending, in general, via implementing an array of major initiatives that will contribute to strengthening the role of the private sector, as the National Investment Strategy and the Partner Program require.

Furthermore, the Public Investment Fund (PIF) program will contribute to providing opportunities as expected, that the total spending in the Kingdom will reach SR27 trillion until 2030, including the investments of the Public Investment Fund, the private sector, government spending and private consumption, and this also supports the ongoing reforms undertaken by the government in the field of developing the business climate and creating an attractive environment for investors to contribute to promoting economic growth.

The Crown Prince addressed the role of the second phase of the vision realization programs, in the qualitative shift of the Saudi economy and achieving what the citizens aspire to, to improve and raise the quality of services and investment opportunities and increase employment opportunities, including the National Industrial Development Program and Logistics Services, the National Transformation Program, the Financial Sector Development Program and the Development Program for upgrading the human capabilities, the quality of life program, the housing program, and its contribution to raising the levels of citizens’ ownership of housing, he emphasized.

HRH Crown Prince also praised the objectives of the Public Investment Fund program, in achieving the goals of the Kingdom’s Vision 2030, as it is the local and foreign investment arm, that contributes to diversifying the economy and the sources of income, supports and complements the efforts made by the government to diversify the national economy.